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Why is gold preferred as ornament to bullions?
Posted on: 28/Apr/2017 4:51:03 PM
Gold, the yellow metal is always sought after for its beauty and glittering finish. Be it in any form, the yellow metal has got its own demand. People buy it either as ornaments or for the purpose of investment.
When it comes to Akshaya Tritiya, there need not be any other reason than the auspiciousness of the day to buy gold. The jewelers believe there is going to be huge demand on this day, as all the challenges caused by regulatory policies after demonetization on 8th November have largely hit the trade.
Aiming at more footfalls, the jewelers are targeting customers with attractive schemes and offers. They waive off all the making charges and announce freebies for purchase of certain quantity of gold.
At the same time, people do not show interest towards buying the Sovereign gold bonds that are issued by the central bank. The main reason for not choosing this type of gold is that people, particularly women do not want a piece of paper to replace their favorite precious metal in ornament format. The certificate can’t be worn around the neck as a necklace!
Annually, in India, about 300 tonnes of gold bars and coins are purchased for the purpose of investment. Of these, most portion come as imports. The world gold council study claims that the biggest need for bride is this yellow metal and about half of total gold import made in India is used for wedding. Hence, most of the portion is used for making ornaments.
